Solar Thermal Energy for Domestic Use in New Zealand - Essay Example

Solar Thermal Energy for Domestic Use in New Zealand Abstract The purpose of this report is to determine the extent of solar thermal energy use in New Zealand and explore the various enabling and limiting factors that affects its uptake rate. After discussing the advantages of solar power, the researcher argues that New Zealand will benefit in adopting solar thermal energy to generate electricity for the home. Research plan included two data collection methods: systematic literature review and an interview with an expert. According to the resources found for this study, energy efficiency of solar thermal power parallels that of the energy efficiency of fossil fuels, hence it is a viable alternative for electricity generation. Moreover, since the solar power is natural, it has no hazardous by-product and it is a renewable resource so it can be used indefinitely. This research has discovered that one reason for the low uptake for solar technology is the high cost and the lack of awareness among building and construction professionals. Solar Thermal Energy for Domestic Use in New Zealand Introduction In a country utilizing various renewable energy sources, demand for solar power in New Zealand is expectedly small and limited. It is confined mostly to water heating in domestic and commercial settings. But as the demand for energy grows, and the cost of generating electricity through coal is becoming more expensive, and researchers are now tapping into renewable power sources and are trying to discover new uses for solar power. This paper hopes to discover the value of using solar thermal energy in New Zealand households. It also attempts to explore the environmental and social advantages of using solar power, as well as determine the various barriers to the adoption of solar conversion systems in the country. This paper believes that the development of solar technology in the country cannot be left to the hands of private investors who may feel that the profit margin for such an endeavor is too low, instead, the government should subsidize efforts at adopting the technology because it will have significant environmental and social gains. This report has four sections: a) the research plan, b) results of the research, c) discussion of these results and d) conclusion and recommendation. Methodology or Research Plan To determine the advantages of solar energy and why it should be adopted in New Zealand, the researcher utilized the following research plan: Phase 1: Discover the potential of using solar thermal energy. This is done through an interview with an expert professional and through online search. The respondent for the interview received through email so as not to impede his work schedule. Meanwhile, the online search was done through search engines. It utilizes search terms like “solar power in New Zealand” and “solar thermal energy for domestic use. Phase 2: Determine the barriers to uptake of solar technology and create recommendation Results The Use of Solar Energy in New Zealand. To determine the potential of solar power in New Zealand, Brian Fawdray, an electrical engineer was interviewed. According to him, solar power was rarely utilized in electricity generation. Unlike other countries which started utilizing solar thermal energy, in New Zealand, electricity using solar power was done mainly through PV cells, which in itself had a limited market reach. When asked what he thought of using PV technology in the household, Fawdray said that he could not readily promote it because the technology is not yet cost effective for all households. In his words, “Cost efficiency depends on many factors. He believes, however that the backup system provided by PV batteries were important since most grid connected systems do not have it, and perhaps this is something PV systems can take advantage of. Fawdray said that much of New Zealand’s electricity was generated using hydropower which was good because it was a renewable resource. The problem with this, however was that because the country was able to use other renewable sources, it is unlikely to promote solar power electricity generation. Fawdray adds, “The government is unlikely to take any steps to raise awareness of PV energy. They will leave it to market forces and promotion by industry stakeholders.” The problem with PV systems is that it is expensive. Cost of the PV systems depends on the material, but average price was at US$ 2.01/Wp (or peak watt) to US$3.62/Wp. Because of the variability in the sizes of PV units, it was difficult to estimate a price for average installation but the EECA said that the price in New Zealand was around $10-$12/Wp Modules and storage systems have to be purchased separately, which made it a costly alternative for domestic use. PV systems were economical for those in the remote areas, particularly those households which had to pay around $20,000 to $30,000 (around 1 kilometer of extra electricity line) to become part of the grid (Energy Efficiency and Conservation Authority, 2001). The good thing with PV systems was that it had a high energy efficiency for PV cells which was rated at about 24.5%, probably the highest among other renewable energy sources. Meanwhile literature shows that the use of solar water technology in the country is still at its minimum. Solar hot water installations were at an average of 1,200 units per year and was expected to contribute as must as 15% of hot water requirements in New Zealand households. Yet, what few people realize is that solar thermal power can be utilized to generate electricity and totally eradicate the use of coal in electricity generation. The use of solar energy for electricity generation could reduce carbon emissions by atleast 270,000 tCO2 and generate employment to as many as 400 people (Energy Efficiency and Conservation Authority 2001). Installation of solar hot water energy systems costed about NZ$4,000 for a full installation, which generated about 2,400 kWh to 3,100 kWh of electricity annually. To see how much economic benefit this SHW installations offered, one can use the “payback period” or the “lifecycle cost” as indicators. The Energy Efficiency and Conservation Authority (EECA) calculated that over the 20-year lifetime of the system, energy production cost was only at 12 cents per kWh. Yet, it was important to note that this calculation was based on retrofits to existing homes, which typically costed more since the structure of the home had to customized to ensure that its energy demand was low. Meanwhile, installation of solar hot water systems on new homes were much cheaper because these systems were now built into the roof structure instead of around it (Energy Efficiency and Conservation Authority, 2001, p. 21). The Potential for Solar Power in New Zealand. Located in the middle latitudes, solar light in New Zealand is about 1,400 kWh/m2 annually. Though the country does not have the high level of solar energy gains found in the desert areas of Australia, it has higher gains compared to Europe. Solar energy accounted for less than 0.05% energy supply of New Zealand (Vos et al., 2009). At present, solar power is utilized in New Zealand in three ways. Passive solar energy was used to keep the household insulated and lighted during the day. Figure 1 below shows the five elements of passive solar energy. assive solar systems was (and still is) an essential component of “green” buildings because it also involved sound building design to dramatically reduce the structure’s energy demand. Figure 1: Five Elements of a Passive Solar Home Design (U.S. Department of Energy, 2011) Solar thermal energy was used for water heating but with the right complementary equipments, it can be used to generate electricity for the home. It can retain and capture low-heat up to 80% of the energy it produced. Research showed that a standard SHW system can heat around 75 to 100% of the household’s water during summer and around 24 to 45% in winter (Vos et al. 2009, p. 21). Because the bulk of energy consumption in the home was allotted to heating (Stoecklei et al. 1997, p. 69; Vos et al. 2009, p. 22), using SHW systems can drastically reduce the amount that homeowners spend for their energy needs. Figure 2 below shows the basic water heating system which was used in the home. . Figure 2: Schematic Diagram of Solar Water Heating for Domestic Use (Riedy, Milne, & Reardon, 2010) Estimates showed that through this application, households can save as much as 50-75% of their water heating costs (Vos et al. 2009, p. 8), with a return on investment between 5 to 10 years. Lifetime for every installation is about 20 to 30 years but regular maintenance was recommended. One advantage of solar thermal energy is that it can be stored and utilized at night, unlike photovoltaic systems which were most effective during daylight. PV systems have been developed in recent years primarily to convert solar insolation to electricity, which made it a favorite alternative source for energy. The problem with PV systems is that storing electricity is associated with huge costs and the panels themselves were expensive. Photovoltaic battery packs have been developed for low-voltage, low-power equipments over the years and PV inverters have been deployed in small remote communities to provide electricity there (Vos et al. 2009, p. 8). Research showed that as of 2004, PV systems have produced about 2.5 GWh of electricity. Figure 3 below shows how PV cells are able to power the home. Figure 3: Home Solar System Using PV Cells (Rutherford, 2009) Discussion of the Results Despite the advantages presented by solar technology, one may ask: why is it not being adopted more in New Zealand? There are actually many reasons for this. Some people claim that solar technologies are pretty young and will tend to change more rapidly over the years. Investing on a system now will be counterproductive as newer and more effective technology can come over the next few months. But this claim is debunked by a report by the EECA (2001) which said that most of the technical issues related to PV systems have been resolved already, particularly for equipments that work on low temperature conversion. PV cells are already mature in terms of technological development. Meanwhile in the case of solar thermal energy, particularly in applications meant to produce electricity (instead of merely heating space and water), a huge amount of land is needed (Solar Thermal, 2008, p. 7). In a report by Solar Thermal, it said that large-scale thermal plants require at least ¼ square mile of land that gets consistent amount of sunlight in order to replace coal plants with a truly sustainable energy source. In the case of New Zealand, such land has not been identified yet and no investor has expressed the desire to put up solar thermal plants for electricity generation because of the inconsistent sun exposure over New Zealand territories. Figure 4 below shows a schematic diagram of electricity generation in the Spanish solar thermal power plants. ow Figure 1: How Solar the Gemasolar Thermal Power Plant in Spain Work (Richard, 2008) Note, however that inconsistent sun exposure is not a real problem since there are various technologies that can capture solar power (CSPs). Figure 5 below shows schematic diagrams for the various CSPs available today. Figure 5: Schematic Diagram of Four Types of Concentrating Solar Power (World Energy Council, 2007) Each CSP has varying capabilities. For example, the parabolic trough worked perfectly for areas where the sunlight angle varied as a result of seasonal changes because it does not require the adjustment of mirrors. Meanwhile, central receiver designs are beneficial for areas with a high temperature and were typically built in any terrain. The disadvantage of this system is that it ran on dual-axis control which calibrated the mirror positions. Dish Stirling systems were used for high temperature energy conversion which lead to more efficient electricity generation. The problem with it was that it used a lot of moving parts and required constant maintenance. Fresnel reflectors were the simplest form of CSPs and they were also cheaper. In a way, they were like the parabolic trough, but required adjustment when sunlight angle changes. Which of these designs fitted New Zealand the best? This cannot be readily answered and will require the assistance of an expert professional who can make the necessary computations in order to arrive at the right conclusion. Up to the present, however, the government has not made the necessary steps towards the “solarization” of electricity generation in the country and information about solar power is still limited to solar water heating. Due to the high capital outlay needed to effectively use solar energy to electricity, the national government has to take initiative. Yet, the question is that, will the government fund such an initiative? Brian Fawdray says that the government is not bound to do that because of the ample renewable resources which are already being used New Zealand. Despite the country’s move towards the use of sustainable energy sources, the truth is that about 40% of its electricity is still dependent on fossil fuels, and solar power is largely untapped. There is also no government policy that supports the development and transfer of technology to communities wishing to make the switch towards solar energy systems. If the government will not promote solar energy systems, then it depends on individual investors to make the switch but the market system shows that the demand for solar energy, particularly PV systems is inadequate. Construction professionals are unaware of the benefits of alternative sources of energy and very few utilize solar energy system installation in their projects. Moreover, installation of solar power system to property does not add value to its price so there is no motivation to transition towards a solar energy. Because the market does not provide motivation for investors to develop the technology and there are very few professionals who are capable of installing the solar technology (and even fewer are those who know the codes and standards related with building designs), solar power is not a competitive industry in New Zealand. One can then say that much of the barriers to the adoption of solar technology in New Zealand is non-technical. This claim is corroborated by a systematic review done by the R. Margolis and J. Zuboy (2006) which identified 10 non-technical barriers to entry. Much of the barriers identified by the study have already been discussed. Perhaps two of the most important contribution of the study is the realization that one reason why uptake of solar technology is very slow in many countries is because there is a lack of stakeholder and community participation. Because of the proliferation of myths connected to renewable energy (e.g. it does not produce enough energy required by the household, household appliances have to be converted, solar energy can only be used in deserts where there is a lot of sun, solar panels and other collection systems can ruin the dwelling’s aesthetics, etc.) communities do not realize the benefits of solar power. Hence, they are unable to demand on the government to fund researches towards the creation of solar thermal plants which will provide highly effective, no by-product electricity to households. Conclusions and Recommendations In conclusion, solar thermal power is desirable technology because it environmentally friendly, and the equipments needed to harness the energy from this resource requires little to no maintenance. In a country like New Zealand, the researchers believe that solar thermal conversion systems can be used to provide energy for applications beyond water heating. Through further research, it is possible to create a solar thermal power plant which can then provide electricity with the same energy efficiency as that provide by coal plants. As such, it is solar thermal energy can be used as a substitute for fossil fuel electricity generation, hence reducing a huge percentage of carbon emissions in New Zealand. Solar power is a cheaper resource, but this claim cannot be immediately verified in monetary terms. Instead, savings on solar power can only be seen over time, when households have used the system for a long time.Since there are no technological barriers to the adoption of solar energy, one may say that the low uptake of the technology in New Zealand may be related to the political will of the leaders. At one hand, the high cost of installation is a definite detractor, but such cost can be easily overcome. Instead, the problem comes from the fact that adoption of solar power has very little immediate effect on the economy, hence there is no real motivation to switch towards this clean energy when New Zealand is already utilizing other renewable forms of energy. The researchers recommend the following actions in order for the government of New Zealand to realize the benefits of solar energy and implement its widespread use: New Zealand should do a cost-benefit analysis of utilizing solar thermal power for electricity generation in order to determine whether solar power is a better fuel source. New Zealand should hire a team of solar architects which can draw up a plan for creating a solar power plant which is most applicable for the country’s sunlight gains. Identify communities where solar thermal power can be fast prototyped. Solicit assistance from business to fund the solar thermal power initiative. Signage Thank you for your time and consideration. After you have looked over this report, I would like to meet with you so that I can discuss some of my findings and recommendations. You may contact me through [this number]. Date of completion: March 26, 2012 Word Count: 2,582 References Energy Efficiency and Conservation Authority. (2001). Solar energy use and potential in New Zealand. Wellington. Margolis, R., & Zuboy, J. (2006). Nontechnical barriers to solar energy use: Review of recent literature. National Renewable Energy Laborator. Oak Ridge. Retrieved from http://www.nrel.gov/docs/fy07osti/40116.pdf Richard, M. G. (2008). Acciona Energia to build two 50-megawatt solar thermal power plants in Spain. Madrid: Treehugger. Retrieved from http://media.treehugger.com/assets/images/2011/10/acciona-energia-solar-01.jpg Riedy, C., Milne, G., & Reardon, C. (2010). Hot water service. Australian Government. Retrieved March 26, 2012, from http://www.yourhome.gov.au/technical/fs65.html Rutherford, M. (2009). How does solar energy work? Biofuels Watch. Retrieved March 26, 2012, from http://www.biofuelswatch.com/how-does-solar-energy-work/ Solar Thermal. (2008). Solar thermal technology on an industrial scale. An Industry Report on Solar Thermal Energy. Retrieved March 24, 2012, from http://www.solar-thermal.com/solar-thermal.pdf Stoecklei, A., Pollar, A., James, B., & Ryan, G. (1997). Multi-disciplinary investigation of energy use in New Zealand household. IPENZ Transactions, 24(1), 64-73. U.S. Department of Energy. (2011). Five elements of passive solar home design. U.S, Department of Energy: Energy Efficiency and Renewable Energy. Retrieved March 16, 2012, from http://www.energysavers.gov/your_home/designing_remodeling/index.cfm/mytopic=10270 Vos, R. de, Fortuin, S., Nichol, S., Franz, P., Jamieson, D., Smith, M., & Stevens, C. (2009). Renewable Resources. Auckland. World Energy Council. (2007). Survey of Energy Resources 2007. London. Retrieved from http://www.worldenergy.org/documents/ser2007_final_online_version.pdf Glossary The glossary for this research has been derived from Energy Efficiency and Conservation Authority (2001). High temperature applications: applications which utilizes temperatures between 700°C to 2000°C. These applications are used in solar thermal energy power plants which can provide electricity to a whole community. Low temperature applications: applications which utilizes temperature increase of only a few degrees above ambient water temperature is needed. Examples of low temperature applications include swimming pools, and domestic water systems. Mid temperature applications: applications which utilizes temperatures of up to 300°C. Mid temperature applications can produce water at 100°C, steam at a higher temperature, or with small concentration, operating temperatures of 180°C and above Photovoltaic cells: cells that solar energy and converts them directly to electricity. These cells are made from a variety of semiconducting materials either in a single crystal form (silicon, gallium arsenide (GaAs), indium phosphide), in multicrystalline and polycrystalline form (silicon, cadmium telluride-CdTe, copper indium gallium diselenide CIGS etc) or in amorphous form (silicon, silicon-germanium alloys). In each case, laboratory cell production and the corresponding industrial scale production techniques are different and lead to different performance parameters and solar conversion efficiencies. Solar photovoltaic conversion: direct solar to electricity conversion is carried out using Photovoltaic (PV) cells. Such electricity has to go through a converter to become useable in the household and an inverter for storage. Solar thermal conversion: consist of a mechanism for capture of solar energy, its conversion to heat at a range of temperatures and its use either directly or in the production of electricity or chemicals using heat. Appendices Appendix A The Six Questions for the Interview 1. Why do you think solar energy should be utilized instead of thermal energy in households in Newzeland? 2. Will the domestic household users be well satisfied with the solar energy usage, if so what is the reason behind it? 3. What is the cost efficiency quotient in using solar energy for the domestic house holders in Newzeland? 4. What kind of strategies should be planned and adopted by Newzeland government in order to avail solar energy resources to domestic house holders in the country? 5. What kind of awareness should be raised among Newzeland citizens in order to make them realize the benefits of using solar energy in their daily life? 6. Does the government really believe that solar energy is the best available source of energy which is environmental friendly? 7. How would Government raise awareness among young generation about the power of solar energy in saving the world form crisis it is facing at the current moment? 8. What is the difference between thermal energy production and solar energy supply? 9. Is solar energy viable for household consumption as in terms of cost, availability and reliability? 10. Why is Newzeland switching to solar energy rather than older version of energy consumption? 11. What is the role of young generation in understanding the beneficial effects of solar energy production? 12. Why is solar energy being introduced lately, any specific reason? Appendix B INTERVIEW QUESTIONS ANSWERS 1. How cost efficient is solar energy? Cost efficiency depends on various factors. If the location is a long distance from power lines, then it may be cheaper to install solar PV than to install power lines to feed the location. In areas fed by power lines, PV is not yet cost effective in NZ but is expected to be within a few years time. That will be when the amortized cost of installing a PV system reaches parity with the price of power from the grid. Some countries that depend heavily on expensive fossil fuels to generate electricity, but have long sunshine hours are at grid parity. This is not the case in NZ where there are ample renewable energy resources (hydro, geothermal, wind) at a national level. 2. Why do you think solar energy should be utilized instead of thermal energy in households in NZ? I don’t think solar energy should be utilized instead of thermal energy in households in NZ. They are both renewable energy systems. Currently thermal energy systems are more cost effective than PV systems 3. What kind of strategies should be planned and adopted by NZ government in order to avail solar energy resources to domestic householders owners in the country?  Many overseas countries subsidize PV installations to encourage householders to install them. However, in NZ where there is ample renewable energy at a national level, the government is unlikely to provide financial incentives. The government encourages energy saving by using efficient heating such as heat pumps and by insulating homes. Growth of PV installations will depend on normal market forces when grid parity is reached. 4. What kind of awareness should be raised among NZ citizens in order to make them realize benefits of using solar energy in their daily life?  When the time is right, promotion of the cost effectiveness of PV. Also the power back-up provided when power is lost in the street. This would only be when batteries are associated with the PV system. Grid connected systems without batteries would not provide this backup. 5. How can the government raise awareness among new Zealanders about solar energy? Please refer to the previous answers. The government is unlikely to take any steps to raise awareness of PV energy. They will leave it to market forces and promotion by industry stakeholders. 6. What is the difference between thermal energy production and solar energy supply? You need to research this answer. 7. How viable is solar energy production for domestic use?  I think I have answered this above. 8. How much electricity in NZ is generated by solar energy? The answer is either most or very little. It is most because our hydro power is the result of solar energy driving the water cycle. It is very little (0.2%) of you are referring to PV power. Read More